THE JAYMOR GROUP TAX ASSISTED REAL ESTATE INVESTMENTS FOR CANADIANS

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1 THE JAYMOR GROUP TAX ASSISTED REAL ESTATE INVESTMENTS FOR CANADIANS 1

2 Mission Statement THE JAYMOR GROUP Tax Advantaged Investments for Canadians The Jaymor Group's mission is to provide Canadian investors the opportunity to participate in strategically located, high quality real estate based investments. Jaymor's strategy in creating investment opportunities is to first select performing properties in cities experiencing economic growth and are expected to continue doing so in the foreseeable future. Then, to financially structure the investment so as to yield to the investors in the short term; cash flow, substantial tax deductions and equity build up through mortgage pay down. In the long term, substantial capital appreciation may be realized. About The Jaymor Group : Helping Canadians through Tax Advantaged Investments since 1989 Over this period of time, The Jaymor Group has developed into one of Canada's premier real estate investment companies, with a proven track record of successfully structuring, syndicating and developing multi-family residential investment properties. As the asset manager for such properties, Jaymor oversees numerous properties in Florida, North Carolina and Texas. Has expanded its' development activity to include North Carolina and Ontario. Currently manages real estate assets in excess of $250 million. Has successfully refinanced many of its assets, sending substantial proceeds to investors Superior track record Consistently outperformed financial projections Why Invest In Real Estate? The new millennium ushered in a dynamic era for real estate investment. Fueled by a new wave of investor money, the current real estate market is a hotbed of opportunity. We have been told repeatedly not to put all our eggs in one basket. One must diversify, and having a performing real estate asset in one s portfolio may have a stabilizing effect. Real estate is a vital part of good financial planning. The bigger your portfolio, the more you need to diversify with real estate. Performing real estate. Vacant Land does not pay the loan or taxes. Why the Apartment Market? Tenants pay the bills and taxes. You risk less as the number of tenants increases. That is why apartments are much better than speculating on single family homes. Also, by focusing on apartment communities in the southern U.S., we are more able to operate the business without the constraints found in Canada. We have found that acquiring and operating the right apartment properties in strategic areas has proven to 2

3 be a solid method of real estate investment over a medium to long-term basis. If you don't wish to be burdened with the costs, liabilities and responsibilities of directly owing a property, a Real Estate Limited Partnership which is professionally managed may be something of interest to you. We have helped many investors this way. Limited Partnerships Can be a good fit The Limited Partnership has the two-fold benefit of affording limited liability to the investor and permitting the flow through of tax benefits derived from the investment. Tax deferrals provided could allow a taxpayer to reduce taxable income after the RRSP route has been fully maximized. Any resulting tax savings can be reinvested to augment your return on equity. Here are some considerations: Canada Revenue Agency must allow the tax deduction that a Limited Partnership (or LP) creates. Precedents from similarly structured LP s that have passed Revenue Canada scrutiny in previous tax years are also beneficial. As a limited partner, you are a passive investor, therefore relying on the competency of the managing or General Partner. A proven track record of the asset managers is probably the most important aspect of any Limited Partnership. A real estate offering is the pooling of funds to finance a large-scale real estate investment, enabling investors to achieve collectively what they cannot readily achieve on their own. Advantages of real estate LP s are that they are real property and therefore a tangible or hard asset. Vacancy rates are known, therefore cash flow from rent can be projected with reasonable accuracy. Most operating costs are known, and professional property management can be retained. Other noteworthy advantages are: Syndication costs (associated with structuring and selling the offering) can be used as tax deductions and can be spread over a five-year period. Some LP s offer limited liability, meaning, as a limited partner you are not responsible for any more money than your initial investment. This is unlike conventional real estate where once you buy a property, you can lose more than your initial equity capital. Your equity capital can be borrowed, hence interest deductibility on the borrowed amount. Borrowing your down payment is forbidden when buying real estate directly. Why Invest With The Jaymor Group? The Jaymor Group is taking advantage of this exciting market by actively buying properties with an eye to adding value. Jaymor's success is based on our ability to acquire and develop properties at the optimum price; to maximize returns through professional property management; and to implement successful exit strategies, which are carefully planned from the time of acquisition. Most importantly, The Jaymor Group has stood the test of time. Since 1989, we have proven our capacity for outstanding performance in every economic climate. We have 3

4 the reputation, the diversity, and the integrity needed in a real estate investment firm. Our strict criteria for investments and our high ethical standards are your best assurance of maximum return on your money. At Jaymor, we are confident that you will benefit from our solid foundation of success and our strategic approach to investments for the future. Proven Track Record The Jaymor Group's offerings have continually provided investors with superior real estate investments that have: Substantially outperformed revenue projections Been successfully refinanced and distributed surplus funds to investors Continued to build equity while providing tax relief The bar chart shown above illustrates the projected amounts of tax deductions plus cash distributions, compared to the actual tax savings and cash distributions received by investors in each project. The Jaymor Group is responsible for investment decisions, asset management, legal and accounting functions and reporting regularly to all investor partners. Jaymor s newest investment offering, Crosswinds Limited Partnership, is now available. Crosswinds will offer investors the same blend of tax deductions, cash flow and capital appreciation potential previous investors have come to expect. Jaymor firmly believes that the basic risk/reward fundamentals of investing are the main criteria for an investment decision. The fundamentals are determinants in their search for properties that demonstrate potential for significant future capital appreciation. In other words, it s not simply about tax deductions. The quality of the underlying investment is paramount. 4

5 At Jaymor, we are confident that you will benefit from our solid foundation of success and our strategic approach to investments for the future. Specialists in income properties. Earn a better return on your investment. Invest right. The Jaymor Group